Is Filing Bankruptcy Ethical?
I’ll be candid. I don’t think that everyone who can file bankruptcy should file bankruptcy. It’s wrong to borrow money with the intention of never paying it back and using bankruptcy as a premeditated financial “escape hatch.” But a lot of people who are looking into filing bankruptcy fully intended to pay their debt. What about these people? I believe that someone who is filing because of some unforeseeable circumstance (such as losing a job) is totally justified in filing.
It gets a little trickier if you’re filing due to financially irresponsible behavior. I advise my clients to take a look at their situation and honestly ask themselves if they could pay off their debt or make substantial progress towards paying it down in three to five years. If they can, then I advise them to do so. If paying it down is unrealistic, then I advise them to seriously consider filing bankruptcy. You can waste years of your life and tens of thousands of dollars unsuccessfully attacking unmanageable debt. In these cases, it would be better for you and for others to file bankruptcy. The financial and emotional stress of unmanageable debt can wreck your quality of life and prevent you from investing yourself personally and financially in others. Though I also have to emphasize the importance of learning from your financial mistakes so that you never have to file bankruptcy again.
As one of the more experienced bankruptcy lawyers in Stockton, we have helped many families facing this tough decision. We will discuss all of your debt relief options with you to give you peace of mind you are making an educated decision for your future. Call our office today for a free consultation.